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Spring 2024 | M&A Report In The Chemicals and Plastics Industry Sector

By Paul Naylor

May 28, 2024

The report below gives a good overview of the Spring 2024 M&A activity in the Chemicals and Plastics Industry Sector. According to BASF report, in 2024, global chemical production (excluding pharmaceuticals) is anticipated to exhibit a moderate growth rate of 2.7%, surpassing the previous year's increase of 1.7%. Notably, advanced economies are expected to experience a slight uptick in production by 0.8% after a substantial decline in the preceding year. China, the leading chemical market globally, is forecasted to sustain robust growth at 4.0%, driven mainly by consumer goods and electronics industries. India is poised to be a significant contributor to growth among emerging markets with a projected increase of 4.5%. In contrast, the European Union aims for stabilization with a marginal growth of 0.8% following consecutive years of decline. The United States anticipates a slight recovery at 1.1%, albeit uncertainties linger due to high interest rates and potential recession risks. Japan's chemical production is expected to stagnate after a notable decline in the prior year. South America projects a modest growth of 1.3%, supported by increasing demand from various industries including consumer goods, automotive, and agriculture. These forecasts suggest a mixed outlook for global chemical production, reflecting both regional challenges and opportunities amid evolving market dynamics. The Plastics Market is set to expand significantly, with an estimated size of $738 billion by 2030, growing at a CAGR of 3.8% from 2024 to 2030. This growth is primarily propelled by the rising demand for lightweight and durable plastics across various industries, alongside increasing construction and infrastructure activities. Notably, India's reliance on plastics for packaging, which currently meets over 40% of its needs, is expected to surge further across diverse applications. Moreover, advancements in plastic processing techniques like injection molding and thermoforming have enabled the production of intricate shapes, fueling demand across multiple sectors. Additionally, the integration of smart plastics, driven by innovations in nanotechnology and sustainability practices such as recycling and energy efficiency, is reshaping the industry landscape, promising a positive outlook for the Plastics Market throughout the forecast period.

Posted by Paul Naylor.

Read the Entire Spring 2024 Chemicals and Plastics Report Here